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Issues: Stay application filed by the Collector of Customs, Kandla for the operation of the impugned order of the Collector of Customs, Kandala dated 18-3-1994.
Analysis: The stay application was filed by the Collector of Customs, Kandla seeking to stay the operation of the impugned order dated 18-3-1994. The Collector alleged that the respondents were exporting plastic straps under the Duty Exemption Entitlement Scheme by mis-declaring the description and actual value of the products. The Collector argued that the charges against the respondents were dropped incorrectly, prompting the appeal. The Collector contended that the DRI officers at Bombay had jurisdiction over the case, and even if the seizure was invalid, it should not impede the adjudication process. The Collector highlighted that the seized consignment was allowed to be exported under a court order before completion of the investigation, potentially affecting the recovery of post-export benefits. The respondents, represented by a consultant, countered that the Collector's finding on jurisdiction was incidental, and there were valid reasons for dropping the charges. The respondents also mentioned a pending petition before the Delhi High Court. The Tribunal carefully considered the arguments presented by both parties. The ground for the stay application was the concern that endorsing the DEEC Book for export would enable the respondents to benefit from obtaining a value-based advance license, making recovery difficult if the department succeeded in their appeal. However, the Tribunal noted that the High Court was already seized of the issue, including the endorsement of the DEEC Book, and had not given any direction on the matter. The Tribunal acknowledged that the appeal was pending before them and that the impugned order contained detailed reasoning for dropping the charges. The Tribunal found that the Collector's reasoning was not arbitrary and could only be assessed during the appeal hearing. Consequently, the Tribunal declined to stay the operation of the Collector's order, emphasizing that the appeal was yet to be decided on its merits. The application for stay was dismissed accordingly.
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